Michelle Lantz of Lantz Communications in Lansing said in the release the Double JJ recently obtained a "limited financing commitment that will allow the resort to prepare for an expected sale in October.

"The level of available financing, together with the traditional off-peak seasonal downturn in the resort's business, however, made continued full-scale operations impossible," Lantz said in the release.

The bankruptcy and potential sale of the resort leaves up in the air the future of the ROTHBURY music festival, which in its first year that brought approximately 40,000 music fans to the resort in July.

Double JJ's financial problems stem from a $17.1 million construction loan that came due earlier this year, but Lipsitz was unable to refinance or repay it. The loan was for the construction of the indoor water park and the first phase of a condominium hotel.

Thomas A. Bruinsma, a court-appointed trustee, has outlined the Double JJ assets and liabilities in court records. The bankruptcy trustee estimated the value of the resort with all of its property, buildings and equipment is in the range of $33.3 million, court records show. The Double JJ debts are at least $22.3 million, according to Bruinsma's report.

Besides the BankFirst construction loan, Double JJ owes Comerica Bank $2.5 million in an outstanding loan. But court records indicate that minority resort owner Walter Wojack may have purchased all of the Comerica debt.

Shelby State Bank's mortgage company is owed another $2.1 million, while Wojack loaned the company an additional $500,000 last November and Great Lakes Energy holds a $98,000 mortgage against the resort, court records show.

Lantz said in her release the Double JJ arranged for Michigan Works! to help the 150 nonseasonal employees find new jobs. The resort will host a wedding scheduled in September and is working with all other scheduled groups to relocate their events. After the wedding, log home and condo owners will continue to have access to personal residences, but the resort will no longer accept rental reservations.

General Manager Tony Laughlin, quoted in Lantz's release, said the closing of the Double JJ was done "with a heavy heart."

"While we had little choice, given the limited financing available, that does not make the decision any easier. Resort employees and the community are really like family so it was tough for everyone. We all hope that the sale happens quickly and the resort will soon open once again," Laughlin said in the release.